South Africa's poultry industry experienced significant losses of approximately R9.5 billion due to the H5 and H7 outbreak of highly pathogenic avian influenza virus (HPAIV) last year. The South African Poultry Association (Sapa) reported that the industry, valued at R60 billion, lost 30% of its breeding hens and 20% of its layers. To mitigate these losses, 150 million breeding eggs were imported since October, which helped in stabilizing the industry. Although egg prices increased in the fourth quarter of last year, the hike was only 5.4%, aligning with end-of-year trends and not as severe as some media reports suggested.
The government's decision to reduce tariffs on poultry imports has sparked debate. Sapa is concerned that this move could impact job creation in the agricultural sector, while poultry importers argue that it will bring cheaper chicken to the country, benefiting consumers. Inflation data from the fourth quarter shows a 38% increase in egg prices and a rise in the cost of fresh and frozen chicken pieces. The Department of Trade, Industry and Competition, influenced by the International Trade Administration Commission's recommendation, believes this tariff reduction will aid lower-income consumers.
Recovery from the outbreak, the worst on record, is expected to take up to a year for South Africa's poultry sector. During this outbreak, 9.5 million chickens were culled, exceeding the numbers from the 2021 and 2017 outbreaks. While there are three internationally recognized vaccines for HPAIV targeting H5, a separate vaccine had to be developed locally for H7.
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